The Jamaica Special Economic Zone Authority (JSEZA) is currently calling Free Zone operators, particularly those granted status before 2016, to get regularised. This move comes in the wake of the country’s quest to ensure conformity and to honour its obligations under the World Trade Organization’s (WTO) Agreement on Subsidies and Countervailing Measures.

In its bid to lure previously operated Free Zone entities to become a part of the new Special Economic Zone Authority (SEZ) regime, the entity has put some incentives in place.

The authority through details provided on its website noted that “in order to facilitate the transition from Free Zone to SEZ it will be registering all Free Zone entities under the SEZ regime while preserving their Free Zone fiscal benefits during the grandfathering period, which expires December 31, 2019.”

This ‘grandfathering’ period, as it is termed, will then be that time frame, which old Free Zone operators and developers will be given compliant in order to carry over its accompanying fiscal benefits from the previous regime.

“If you are a current Free Zone holder and registered with the SEZ Authority, your benefits automatically continue until the end of the transition period, December 31, 2019”, the authority posted.

The SEZ Authority further noted that “the upgrading of the Free Zone regime to a modem SEZ regime is to promote competitive trade globally and to encourage Jamaican businesses to be responsive to changes in global production and market condition”.

With an application deadline of July 31, 2019 being given, operators from the old Free Zone regime are urged to transition now in order to enjoy full SEZ status and enjoy some of the new benefits. These include: opportunities to tap into larger markets and diversify operations, to integrate and network across multiple jurisdictions, and to establish efficient investor and business facilitation in a one-stop service.

The JSEZA is an agency of government responsible for facilitating the development of and promoting investments in SEZs in Jamaica. It was established in 2016 under the Special Economic Zones Act and its intended operations aimed at growing the Jamaican economy through investments and job creation. The agency also aims at making the country a major player in the global logistic hub. The Authority is currently chaired by Metry Seaga.

— Kellaray Miles